How Moscow’s Lockdown Will Hurt Retailers, Movie Theaters and Restaurants

The declaration of a lockdown in Moscow prompted fear among market participants who had not anticipated such severe restrictions.

Movie theaters are delaying new openings, merchants are concentrating on online sales, and the suspension of operations for event promoters and the food service sector may result in a fresh round of bankruptcies, Kommersant writes.

According to Sergey Kuznetsov, Marketing Director of the Formula Kino and Movie Park chains, such stringent limitations were unforeseen, and the cinema distribution business “is not ready for it.” “The new lockout triggers a cascade of negative market repercussions,” Karo Film told the newspaper, adding that governmental assistance is desperately required in this scenario. 

According to Mikhail Minin of MTS Entertainment, Moscow’s main music venues were completely booked for the lockdown days.

“We are seeing a total stoppage of ticket sales for events and mass returns,” Olga Shpigalskikh, social ombudsperson in the field of cultural and mass events, observed, adding that this is a catastrophe for the sector, whose volumes have already dropped by more than 90%.

According to Evgeny Nichipuruk, co-founder of the Rakovaya chain, the lockdown may be the final straw for restaurants which have not rebounded from their summer losses due to QR-codes, and some may close for good.

He adds that the delivery option is unlikely to help maintain their heads above water unless it is fast food. Retailers share this gloomy view, but some are sympathetic of the restricted restrictions. Tikhon Smykov, President of the Inventive Retail Group, said that demand for their goods will undoubtedly shift online.